Executive Mosaic’s GovCon Index closed slightly below the flat line following a -0.01% drop to $4,895.55. The major U.S. benchmarks scored back-to-back gains, led by the 317.24 points advance by the Dow Jones Industrial Average (+0.71%). There was less pressure on the broad S&P 500 (+0.39%) and tech-heavy Nasdaq Composite (+0.19%) midweek.
Decliners Edged Gainers
On the GovCon Index, the situation reversed from Tuesday as decliners edged gainers, 16 to 14. Mercury Systems (Nasdaq: MRCY) was the top advancer and breakout stock with +18.51%. Boeing (NYSE: BA) was the second-best performer. Palantir Technologies (Nasdaq: PLTR) topped decliners following investors’ profit-taking.
Mercury Systems, a technology company providing hardware and software products for the aerospace and defense industry, reported impressive Q2 fiscal 2025 results. In the three months ending Dec. 27, 2024, net revenues increased 13% to $223.1 million compared to Q2 fiscal 2025. The total backlog rose 6.06% year-over-year to $1.4 billion, while the net loss after the first half of fiscal 2025 thinned 57.34% to $35.1 million from a year ago.
Boeing popped +3.18% on news that Elon Musk, head of Trump’s Department of Government Efficiency, wants to expedite the delivery of two new Air Force One jets. Kelly Ortberg, CEO of Boeing, said, “We’ve been engaged with Elon and the U.S. Air Force to cut unnecessary costs and speed up the delivery timeline.” The projected delivery dates are 2027 and 2028.
Booz Allen Hamilton (NYSE: BAH) announced the completion of the spin-off of SpinAttack. Cisco Systems (Nasdaq: CSCO) acquired the cyber company developed by Booz Allen DarkLabs. Mark Calderone, chief financial offer of Booz Allen, said, “This is an excellent outcome for all involved and we look forward to continuing to work with the SnapAttack team.”
A Stable and Supportive Labor Market
Based on the ADP Employment report released Wednesday, the U.S. labor market remains stable and supportive. Private employers added 183,000 jobs in January compared to 176,000 in December. Nela Richardson, APD’s chief economist, said, “Consumer-facing industries drove hiring, while job growth was weaker in business services and production.”
Meanwhile, according to FactSet, seven of the 11 S&P 500 primary sectors, thus far, have reported year-over-year earnings growth for Q4 2024.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,895.55 | -0.36 | -0.01% |
| Dow Jones Industrial Average | 44,873.28 | 317.24 | 0.71% |
| NASDAQ | 19,692.33 | 38.31 | 0.19% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 49.88 | 7.79 | 18.51% |
| BA | 181.84 | 5.61 | 3.18% |
| CW | 350.93 | 6.36 | 1.85% |
| GIB | 120.17 | 2.07 | 1.75% |
| ACN | 398.25 | 6.63 | 1.69% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 49.88 | 7.79 | 18.51% |
| ACN | 398.25 | 6.63 | 1.69% |
| CW | 350.93 | 6.36 | 1.85% |
| BA | 181.84 | 5.61 | 3.18% |
| GIB | 120.17 | 2.07 | 1.75% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 101.36 | -2.47 | -2.38% |
| NOC | 472.34 | -10.05 | -2.08% |
| BAH | 129.35 | -2.62 | -1.99% |
| CACI | 380.12 | -6.24 | -1.62% |
| TTEK | 34.09 | -0.45 | -1.30% |
